Ashtead Technology Holdings PLC · LSE:AT.
Ashtead Technology — H1 2022 Earnings Presentation
18 slides from Ashtead Technology's earnings presentation, September 2022
Slide 1: 2022 Half Year Results Presentation
2022 Half Year Results Presentation September 2022
Slide 2: Disclaimer
Disclaimer This presentation has been prepared and issued by, and is the sole responsibility of, Ashtead Technology Holdings plc (the “Company”), being the current holding company of the Ashtead Technology Holdings plc group (the “Group”). For the purpose of this disclaimer notice, “presentation” sh
Slide 3: A strong first half
A strong first half Increased confidence in outlook for the business with record tendering activity • 28.5% year-on-year revenue increase delivered through growth across all geographic markets, enabled by higher demand in both offshore renewables and offshore oil and gas A strong first half • Offsho
Slide 4: HY 2022 highlights: A strong start to the year
HY 2022 highlights: A strong start to the year Revenue Adjusted EBITA Cost Utilisation Net debt / Adjusted EBITDA £31.7.m £8.2m 44% 0.9x HY21: £24.7m HY21: £5.5m HY21: 39% HY21: 1.8x Adjusted EBITA Adjusted EPS ROIC Total Recordable Margin Incident Rate 8.3p 19% 25.8% 0 HY21: 22.4% HY21: 4.1p HY21:
Slide 5: Continuing track record of strong financial performance
Continuing track record of strong financial performance HY22 demonstrates post-COVID recovery Revenue1 (£m) Adjusted EBITDA1,2 (£m) Adjusted EBITA1,3 (£m) 43% 45% 40% 40% 41% 39% 22% 26% 15% 25% 22% 26% 5.8 1.7 2.1 13 5.1 3.8 55.8 13.7 47.8 12.1 21.9 22.4 42.4 37.7 16.9 17.0 31.7 8.2 7.6 24.7 12.3 6
Slide 6: Profit & Loss
Profit & Loss Profits show strong growth following COVID recovery and acceleration of market growth rates £m HY21 HY22 Overview Revenue 24.7 31.7 • Revenue grew by 28.5% from HY21 to HY22 YoY performance 25.1% 28.5% • Driven by a shift change in market – focus on energy security and affordability re
Slide 7: Cashflow
Cashflow Strong operating cash flow generation funding growth capex £m HY21 HY22 Operating and free cash flow conversion (pre exceptional costs) Adj. EBITDA 10.1 12.3 119% Exceptional costs (0.5) (0.1) 90% 95% Gain on Sale of fixed assets (0.6) (0.6) 76% 72% Other 0.0 0.1 55% Cash generated before w
Slide 8: Balance Sheet
Balance Sheet Strengthened balance sheet with leverage reduced to 0.9x £m HY21 FY21 HY22 Working Capital to Revenues 22% 12% 18% 17% 16% GBV of rental fleet 103.8 104.9 115.0 Accumulated depreciation of rental fleet (85.1) (85.6) (90.9) NBV of rental fleet 18.7 19.2 24.1 Dec-19 Dec-20 Jun-21 Dec-21
Slide 9: Capital allocation prioritises investment in growth
Capital allocation prioritises investment in growth Medium Term Leverage Policy Adjusted Net Debt to EBITDA: 1.0x – 2.0x Organic fleet growth Bolt-on acquisitions Shareholder returns Continued investment in maintenance and Sustainable progressive dividend for Deploy free cash flow and balance sheet
Slide 10: Operational Overview
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Slide 11: Market tailwinds remain favourable for medium term growth
Market tailwinds remain favourable for medium term growth Ashtead’s addressable market to grow through increased activity and pricing • Strong tailwinds from increasing focus on energy security in Ashtead Total addressable market by cost group1 Technology’s core markets Segment • 2022 has seen an up
Slide 12: Quoting, Pricing & Utilisation show positive trends
Quoting, Pricing & Utilisation show positive trends A tight market driving increase in quotes, strong utilisation and supporting price rises Tendering activity increasing Consistent Cost Utilisation1 Driving Pricing Increases 43% 44% 41% +6% 39% 37% 35% +6% +4% -6% +3% Jan Feb Mar Apr May Jun Jul Au
Slide 13: Other Operational Updates
Other Operational Updates Continued investment in people, processes and facilities for growth ▪ Employee headcount increased to 219, positioning the business for continued growth ▪ Further strengthening of senior team • Phil Middleton – Survey & Robotics Director • Ross MacLeod – promoted to Integra
Slide 14: Continued focus on M&A
Continued focus on M&A Existing capability and geographical gaps highlight room to grow through M&A Service line / Existing Capability / Market Penetration A clear and focused set of M&A criteria… End market APAC Middle East Europe Americas Survey & Robotics ▪ Consolidation of a highly fragmented ma
Slide 15: WeSubsea acquisition
WeSubsea acquisition Strengthening mechanical solutions service line Background ▪ Founded in 2010, WeSubsea is a privately owned subsea dredging technology and rental business ▪ Operates globally from Aberdeenshire utilising an international partner network ▪ Highly regarded for its fleet of high pe
Slide 16: Increased confidence in outlook
Increased confidence in outlook Delivered strong performance in HY2022 with increased confidence in full year outlook Clear market drivers supporting growth ▪ Continued strengthening of market through 2022 with increased ▪ Remain confident of making further progress in 2022, with a clear organic gro
Slide 17: Why Ashtead Technology?
Why Ashtead Technology? Targeting low-double digit annual organic revenue growth over the medium term 6 1 Market consolidation, value accretive Exposure to high growth M&A offshore renewables market 5 2 Underpinned by resilient oil & gas Strong cash generation, high returns market 4 3 A strong platf
Slide 18: Office locations
Aberdeen Abu Dhabi Broussard Halifax Houma Houston Inverurie London Singapore
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